Suddenly gun-shy: USD/JPY has traded 20 pip range since the retail sales swing
The story in markets for the past two weeks has been volatility. Some of swings have almost risen to nonsensical levels with 50-70 gyrations without any kind of fundamental underpinning.
Today's move had a fundamental driver -- retail sales -- but the move was all over the place. Sales were slightly stronger than expected and with some very good revisions but 40 pips rally turned into 40 pip loss in minutes.
Eventually, the market reverted back to where it was before the data. From there, it's almost as if traders tossed up their hands and went home.
USD/JPY two-day chart. The latest whipsaw on retail sales.
Here's a look at the orderboards
Bids:
- 123.27 - pullback low
- 123.05/00 - medium demand
- 122.63 - intraday low
- 122.50/46 - medium demand
- 122.09 - bids
Offers:
- 123.80 - European high
- 124.13 - Intraday high
- 124.50 - Medium offers
- 124.62/73 - recent highs
